Public Sector Wages Rise Faster Than the Private Sector: ABS Statistics

People shop in the confectionery section of a supermarket in Western Australia on May 4, 2024. (Susan Mortimer/The Epoch Times)

Public sector wages rose more than the private sector in the June quarter, Australian Bureau of Statistics (ABS) statistics show.

Overall, Australian wages grew 0.8 percent in the June quarter of 2024 and have risen 4.1 percent in a year.

Private sector wages rose by 0.7 percent in June quarter 2024, lower than the 0.9 percent jump in the March quarter.

ABS head of price statistics Michelle Marquardt highlighted this was the smallest private sector rise in three years.

“The June quarter 2024 private sector rise was the lowest rise for a June quarter since 2021 and the equal lowest rise for any quarter since December quarter 2021,” she said.

In contrast, public sector wages jumped 0.9 percent, up from 0.6 percent in the March quarter of 2024.

The ABS noted that all Australian Public Service employees received a pay rise, which applied from March 14, 2024.

In the past, pay rises in these fields were paid across different quarters depending on the timing of individual agency agreements.

“The stronger June quarterly rise for the public sector was largely due to the newly synchronised timing pattern of Commonwealth public sector agreement increases,” Marquardt said.

The rise in public sector wages was the highest for any June quarter since 2012. However, it was lower than the December quarter 2023.

Wage Rise Weaker than Expected

In response to the news, ANZ researchers said the overall wage price index rose slightly weaker than the market and RBA expected.

“Annual wage growth was steady at 4.1 percent year on year, which was marginally higher than forecast, reflecting revisions to seasonal factors. But the six-month annualised rate fell to 3.4 percent, a two-year low,” senior economist Catherine Birch said in a research note.

Birch said today’s data confirms wage growth is slowing but only gradually. She predicted it would not shift the RBA’s view that wages growth is “still above the level that can be sustained given trend productivity growth.”

Birch said there is no change to the ANZ’s expectation that the RBA will keep the cash rate on hold at 4.35 percent until February 2025.

Government Response

Meanwhile, Treasurer Jim Chalmers and Employment Minister Murray Watt said annual real wages would continue to grow.

“This return to sustainable wages growth under a Labor government is welcome, but we know people are still under pressure,” the ministers said in a joint statement.

“That’s why we’re focused on tackling inflation and delivering responsible cost of living relief, including our tax cuts to every taxpayer which have been rolling out since July 1.”

The government claimed since they were elected wages have been growing at a rate of 3.8 percent per year.

Chalmers and Watt said the government’s main focus remains tackling the inflation challenge and rolling out responsible cost of living relief.

“We’re acting to boost wages and close the gender pay gap, securing pay rises for some of the lowest-paid workers in our community, including an extra 15 percent announced last week for early childhood educators, building on pay rises for aged care workers,” they said.

However, Shadow Treasurer Angus Taylor said recently there had been an 18 percent increase in prices since the last election.

“We need to see a restoration of Australians’ standard of living. We’ve seen a collapse in our standard of living in this country. Real disposable income comes down 8 percent, real wages down 9 percent, working family prices up 18 percent,” he said.

“I mean, this is a disastrous situation for Australian families, and we keep seeing a Labor government that puts band aids on bullet wounds,” he said during an interview on ABC Radio on Aug. 8.

Taylor said the Coalition wants to see higher wages, which means lower prices for Australians.